Ch. 405

LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1987.

Approved May 14,, 1987.

CHAPTER 405

(Senate Bill 874)

AN ACT concerning

Financial Institutions - Clearance of Items

FOR the purpose of declaring it to be the public policy of the
State to ensure that customers and or members of certain
financial institutions are able to draw against items
deposited for collection in their accounts within a
reasonable period of time; defining certain terms; requiring
the Bank Commissioner to gather relevant information and to
adopt certain regulations regarding the time period within
which banking institutions and credit unions shall be
required to permit a customer or member to draw, as of
right, on an item received for deposit in the customer's or
member's account; requiring the Director of the Division of
Savings and Loan Associations to gather relevant information
and to adopt certain regulations regarding the period within
which savings and loan associations shall be required to
permit a customer to draw, as of right, on an item received
for deposit to the customer's account; requiring that the
regulations adopted require the financial institution to
notify the customer or member of a customer's or member's
rights under the regulation and to keep posted in each
branch a notice of the customer's or member's rights under
the regulations certain financial institutions to give a
certain notice concerning the generally applicable time
limitations and the financial institution's policy on the
right to draw on certain deposited items, and to post the
notice in each branch of the financial institution;
authorizing the Bank Commissioner or the Division Director,
as appropriate, to adopt certain additional regulations if
they find that uniform application of the regulations result
in unsound or unsafe banking practices; providing that a
period of time for drawing against an item longer than that
permitted under, the regulations shall generally be
considered to be an unreasonable period of time; permitting
a financial institution to establish in a private agreement
with a customer or member a period of time for drawing
against an item longer than that provided in the regulations
adopted under this Act, under certain circumstances;
providing that if certain federal legislation is enacted and

                - 2062 -